Texas Pacific sets sights on India, plans $150 mn investment

NEW DELHI: Global private equity investment firm Texas Pacific Group (TPG), which manages over $20 billion worth of investments globally, is now eyeing India. TPG is planning multiple investments of around $75 million each in technology and consumer verticals during 2007.

To track such opportunities, it has roped in former Intel capital chief Varun Kapur to head the Indian VC arm, TPG Ventures. With Mr Kapur on board, TPG will also invest in early stage ventures. Earlier, TPG was solely focussed on large private equity investments and buyouts in India through its Asian arm —- TPG Newbridge.

Speaking to ET on Friday from San Francisco, ex-Wipro vice-chairman and currently TPG partner Vivek Paul said that TPG would, however, tread cautiously as there are too many venture capital investors in India but too little compelling ventures to invest in.

“Most small internet ventures wanting investment present themselves as the next Google, Yahoo or Ebay of India. But most don’t have a compelling business plan yet. Still, there are a few innovative businesses and buyout opportunities and we are looking at them,” he said.

Mr Paul, however, declined to comment on media reports that TPG, Reliance Communications alongwith Blackstone is planning to shell out in excess of $8 billion for Hutchsion Telecommunication International’s 52% stake in Hutch Essar. “Since it may affect future and ongoing deals, I would not like to comment on the deal,” he said.

Speaking from Hong Kong, Mr Kapur, on his part, said the company’s immediate plan is to put in a team that’s focused on expansion growth and investments of less than $75 million in TMT and finance verticals.

Interestingly, it has decided to stay away from investing in the real estate sector, he said. It may be pointed out that TPG recently sold in India its stake in Matrix Labs to Mylan.

(This article was originally published in The Times of India)

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